The state-owned shipyard Navantia has reached an agreement to acquire its British competitor Harland & Wolff, the manufacturer of the historic Titanic, which was under administration, as announced on Thursday. The transaction is expected to be completed in January.
The sales agreement allows ensuring the 1,000 jobs at stake, the British government states. The company has four shipyards located in Belfast (Northern Ireland), Arnish and Methil (Scotland), and Appledore (England). Although specific economic figures have not been disclosed, Sky News reports that the deal is worth around £70 million, approximately €85 million. The closure is subject to negotiation and the relevant regulatory approvals.
In the context of the purchase, the Spanish Ministry of Commerce has improved the conditions of an existing contract for the construction of three auxiliary vessels for the Royal Navy, as requested to make the operation viable, a project in which it was a partner of Harland & Wolff. Navantia UK, the British subsidiary, is the main contractor for this program (known as FSS), valued at around 2 billion euros and involving 1,600 jobs in Spain, including direct, indirect, and induced employment. It involves the shipyard in Puerto Real (Cádiz) and facilities of Harland & Wolff in Belfast (Northern Ireland) and Appledore (England). This is the largest export contract in the history of the Spanish group.
A delicate situation
Navantia’s British subsidiary will manage Harland & Wolff’s industrial capabilities. The company filed for bankruptcy in September after failing to secure funding to sustain its operations, as rising energy prices and wage increases slashed profits and inflated debt with soaring interest rates. In the summer, British authorities rejected their request for a £200 million loan, roughly equivalent to €240 million.
The company founded in 1861 by Edward James Harland and Gustav Wilhelm Wolff was responsible for building the historic RMS Titanic, as well as the RMS Olympic and the HMHS Britannic. In 2019, the company was already in receivership when it was acquired by the energy company InfraStrata, which had little experience in the industry.
